Shohei Ohtani: Illuminating the Baseball World with a $700M Move from Distant Space
Shohei Ohtani, the supernaturally talented baseball star, has ascended even higher with his groundbreaking $700M move to the Los Angeles Dodgers His incredible skills and marketability have already made him the talk of the town
Shohei Ohtani was already being touted as baseball's top and most marketable star well before signing his groundbreaking $700 million deal with the Los Angeles Dodgers. Since joining the Los Angeles Angels six years ago, Ohtani has revolutionized baseball, showcasing his dominance as both a pitcher and a batter. However, due to undergoing elbow surgery, he will not be pitching again until 2025 and will only be serving as a designated hitter in 2024.
Ohtani's stardom is set to reach new heights as he joins the Dodgers, one of the most renowned and accomplished franchises in sports. With the team's history of winning 10 out of the last 11 division titles in the National League West, Ohtani's presence will further elevate the LA team's brand and create high expectations for deep postseason runs. In a remarkable achievement, Ohtani became the first player since 1893 to finish in the top-15 in both home runs hit and strikeouts pitched in a single season.
His groundbreaking accomplishments are now surpassed by a contract of such magnitude that it far exceeded the previous highest-paid player, Mike Trout, who agreed to a 12-year, $426.5 million extension with the Angels in 2019. Ohtani's deal is nearly double the league's next largest free agent deal, which Aaron Judge secured with the New York Yankees - nine years and $360 million - in 2023.
"Shohei is a once-in-a-generation talent and one of the most thrilling professional athletes in the world," expressed Dodgers chairman Mark Walter on Monday as he celebrated the 29-year-old Japanese star on his "historic" contract.
Ohtani pitches during the World Baseball Classic final against the United States earlier this year.
Shuhei Yokoyama/The Yomiuri Shimbun/AP
Ohtani's record-setting contract with the Los Angeles Dodgers will see him deferring over 97% of the $700 million deal until after the 10-year term ends, a source familiar with the terms of the agreement told CNN on Monday. According to the source, Ohtani will defer $68 million of his $70 million annual salary, with the remaining $680 million to be paid starting after the 2033 MLB season.
"The idea of extreme deferrals in this contract originated from Shohei himself," the CNN source revealed. "He was well-versed in the implications and process of deferrals and believed it was the best course of action. As negotiations progressed, Shohei made the decision to defer nearly all of his salary."
Meanwhile, MLB Network Insider Mark Feinsand commented that Ohtani's decision enabled LA to pursue additional talent to support the two-time MVP.
"Feinsand stated that Ohtani aimed to reduce the competitive balance tax and cash-flow burdens in order to give the Dodgers the flexibility to remain competitive. Additionally, backloading the contract will also decrease Ohtani's personal tax liability, as per The Wall Street Journal."
While playing home games in California, Ohtani will only earn $2 million annually due to the state's high income tax rates. He will also have to pay taxes on road games played in other states. Once he receives the remaining $680 million in pay, Ohtani can choose to live in a state with lower tax rates, such as Florida which has no income tax, or even in Japan.
Despite the caveats regarding the deferral, this deal firmly establishes Ohtani as a standout star in the world of sports. According to Forbes, his contract alone is worth 70% of the Miami Marlins' total estimated value, underscoring the heightened value of an individual player in a league that lacks widely popular, top-tier stars.
Ohtani's impact goes beyond the field, as he brings significant commercial influence to the Dodgers, with Forbes estimating that he earned at least $35 million in endorsement earnings last year, surpassing the $6.5 million earned by Bryce Harper in 2022.
Shohei Ohtani bats against the New York Mets.
Jim McIsaac/Getty Images
Ohtani's unprecedented deal has generated an enthusiastic response from the American sports world and in Japan following a tense free agency period where every one of his decisions was closely examined.
"Bro, seriously, what!" exclaimed Patrick Mahomes, quarterback for the Kansas City Chiefs, whose $450 million contract over 10 years is the priciest in the NFL, as reported by Spotrac. "Congratulations to him!"
"700Ms is crazy!! [sic] And he deserves every Penny of that too! Sheesh," the Cleveland Cavaliers Donovan Mitchell posted on X, formerly Twitter.
Paul Sewald, a relief pitcher for the Arizona Diamondbacks, threw against the Philadelphia Phillies during the ninth inning in Game 7 of the baseball NL Championship Series in Philadelphia on Tuesday, Oct. 24, 2023. (Photo credit: Brynn Anderson/AP)
Viewership remains a major concern for baseball, regardless of whether the World Series is ongoing. At the same time, Ohtani's contract garnered widespread attention in Japan, making headlines in newspapers and receiving an outpouring of well-wishes on social media.
"I am filled with joy and pride to see a superman of Japanese descent. He seems almost supernatural, bringing light from distant space. It is a rare privilege to witness such a person in my lifetime," a fan wrote on X.
Another user expressed, "This moment brought me such happiness, I never thought I would see the day."
Meanwhile, Japan's Chief Cabinet Secretary, Yoshimasa Hayashi, acknowledged the Dodgers' history of having many Japanese players and expressed hope that Otani will thrive in his new team. Otani's continued ability to generate interest in baseball is particularly important as TV ratings for "America's pastime" are currently declining.
The World Series this year had the smallest TV audience in history, with an average of 9.11 million viewers, according to Nielsen and Fox. This is a 23% decline from last year's average of 11.78 million viewers.
In a recent Washington Post survey, baseball ranked third as Americans' favorite sport to watch, with only 9% preferring it compared to 34% for football and 12% for basketball. This marks a significant drop from the mid-20th century when 30% of Americans preferred baseball as their favorite sport.
CNNs Matt Egan, Hanako Montgomery and Junko Ogura contributed reporting.
